Burger King 2011 Annual Report Download - page 98

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Table of Contents
BURGER KING HOLDINGS, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
Assets leased to franchisees and other third parties under operating leases that are included within our property and equipment, net was as follows (in
millions):
Successor Predecessor
As of December 31, As of June 30,
2011 2010 2010
Land $ 263.6 $ 264.5 $ 198.3
Buildings and improvements 158.7 156.2 116.2
Restaurant equipment 16.9 22.2 5.0
439.2 442.9 319.5
Accumulated depreciation (38.6) (21.8) (46.0)
$ 400.6 $ 421.1 $ 273.5
Net investment in property leased to franchisees and other third parties under direct financing leases was as follows (in millions):
Successor Predecessor
As of December 31, As of June 30,
2011 2010 2010
Future rents to be received
Base rents $ 318.5 $ 318.6 $ 316.6
Contingent rents(1) 154.5 146.5 —
Estimated unguaranteed residual value 29.6 29.7 3.7
Unearned income (244.9) (224.9) (172.3)
Allowance on direct financing leases (1.1) — (0.6)
256.6 269.9 147.4
Current portion included within trade receivables (14.4) (14.4) (8.9)
Net investment in property leased to franchisees $ 242.2 $ 255.5 $ 138.5
(1) Amounts represent estimated contingent rents recorded in acquisition accounting.
In addition, we are the lessee on land, building, equipment, office space and warehouse leases, including 343 restaurant buildings under capital leases.
Initial lease terms are generally 10 to 20 years. Most leases provide for fixed monthly payments. Many of these leases provide for future rent escalations and
renewal options. Certain leases require contingent rent, determined as a percentage of sales, generally when annual sales exceed specific levels. Most leases also
obligate us to pay the cost of maintenance, insurance and property taxes.
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Source: Burger King Holdings Inc, 10-K, March 14, 2012 Powered by Morningstar® Document Research℠